Housing Forecast 2nd Half of 2016

Mortgage rates could reach all-time lows. Fitch Ratings expects U.S. mortgage rates to reach all-time lows following the United Kingdom’s vote to leave the European Union.
New construction remains slow. In May, groundbreakings stood at an annual rate of 1.138 million, below the 1.5 million needed to get supply back in line with demand. Mst of the homes that have been built in recent years have been for the luxury consumer, rather than lower price starter homes.
Homeowners aren’t selling. Meanwhile, people aren’t moving as often, meaning fewer existing homes are coming onto the market. Prices have risen so much that potential sellers can’t afford to buy that next level home in their current neighborhood.
Demand is still strong. Home values are currently appreciating an annual rate of 5%, well above the historical average of around 3% to 3.5%
What Does This Mean for the Buyer?
Have your checkbook ready. Typical homes are selling in 42 days, the fastest rate since 2009, according to Redfin.
Be prepared to pay asking. At 95.3% of asking price the average sale-to-list percentage is also the highest Redfin has seen.
Other things to watch.
The Fed. The Federal Reserve isn’t expected to hike short term rates more than once this year, meaning monetary policy will have negligible sway on mortgage rates.
The Election. In a survey of housing economists Zillow found that market forecasts would not be affected or even positively affected if someone conventional were elected. However if someone more outside the mainstream were to become president, the economists’ forecasts would be negatively impacted.
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For Your Real Estate Options!Housing Forecast 2nd Half of 2016
Mortgage rates could reach all-time lows. Fitch Ratings expects U.S. mortgage rates to reach all-time lows following the United Kingdom’s vote to leave the European Union.
New construction remains slow. In May, groundbreakings stood at an annual rate of 1.138 million, below the 1.5 million needed to get supply back in line with demand. Mst of the homes that have been built in recent years have been for the luxury consumer, rather than lower price starter homes.
Homeowners aren’t selling. Meanwhile, people aren’t moving as often, meaning fewer existing homes are coming onto the market. Prices have risen so much that potential sellers can’t afford to buy that next level home in their current neighborhood.
Demand is still strong. Home values are currently appreciating an annual rate of 5%, well above the historical average of around 3% to 3.5%
What Does This Mean for the Buyer?
Have your checkbook ready. Typical homes are selling in 42 days, the fastest rate since 2009, according to Redfin.
Be prepared to pay asking. At 95.3% of asking price the average sale-to-list percentage is also the highest Redfin has seen.
Other things to watch.
The Fed. The Federal Reserve isn’t expected to hike short term rates more than once this year, meaning monetary policy will have negligible sway on mortgage rates.
The Election. In a survey of housing economists Zillow found that market forecasts would not be affected or even positively affected if someone conventional were elected. However if someone more outside the mainstream were to become president, the economists’ forecasts would be negatively impacted.

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